Ontario Proposes Temporary 5.7 Cents Fuel Tax Cut

The Ford government proposed legislation on Monday to reduce the fuel tax burden on Ontario drivers. If passed, this legislation would cut the tax on gas from 14.7 cents to 9 cents per litre. A further 5.3 cent cut on the fuel tax for other fuels, such as diesel, has also been announced.

This measure would last for a total of six months, starting July 1 and ending December 31.

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"Ongoing supply chain challenges and geopolitical conflicts are pushing up the cost of living from gas to groceries," Ontario Finance Minister Peter Bethlenfalvy said in a statement.

"That is why our government is bringing forward legislation to provide tax relief at the pumps and put money back into people's pockets," he added.

Fuel prices have been skyrocketing since the conflict between Russia and Ukraine erupted. Russia produces about 10% of the world's oil, and has been subjected to severe sanctions by Europe and the Americas.

This announcement also comes ahead of the provincial election scheduled for June. Last month, Ford's government has also announced the cancelling of licence-plate sticker fees, along with a series of measures in other sectors that it says are aimed at reducing living costs for Ontario residents.